Here I will attempt to get the truth out about what having a Web site entails. The truth - uncensored. This is not a pitch, rather the facts based on working with over 300 clients since 1995. In that time I have learned, by trial and error, experimentation and implementation of daring new ideas what truly is necessary to have a Web site - a successful Web presence
Just the Factoids . . .“Doing business on the Web successfully takes capital, innovative leadership and execution, marketing savvy, perseverance, and the intelligent application of technology. As the Internet continues to speed the pace of change in the coming years, many aspects of business will be altered and transformed - but those guiding principles will always remain.” |
The myths listed here were cumulated over the last several years as potential and current clients contacted me about their businesses, entrepreneurial concepts and believe it or not ideas that were so darned wacky I could not help but chuckle. During these discussions, however, it became brutally clear that somewhere out there people are being fed hype, myths and untruths or were simply making too many assumptions.
It is not uncommon to hear “A friend of mine says……” or “they say” or “others have told us”. Taking advantage of your lack of knowledge, exposure or understanding to give you the perception of easy riches is big business on the Internet. You need to separate the hype from the facts in order to succeed.
You need to make a commitment to learn enough to be able to do this and also trust those who have been successful in this industry to guide you accordingly because the bottom line is “friends”, “they” or “others” will not make you successful. Unless of course “they” are full-time experienced Technology pros.
If you are looking for an “do-it-yourself” solution, then I am about to burst your bubble. Unless you are willing to apply and learn the skills and knowledge necessary to create a professional presentation. Don’t let anyone persuade you differently due to your insecurity of understanding what is involved or your inability to know where to begin. You will need to work hard and make a solid commitment to the project both financially and in the time you dedicate to your endeavor.
Anything in this world worth having, which includes a quality Web Presence, is worth the extra time, effort and expense to do it right. On the Web how you are perceived, how you respond, your customer service levels and policies, what you offer - then living up to those promises, will make or break you - but then again, the same applies to any off-line enterprise, right?
When I partner with clients to create effective, cross-platform structurally sound Web sites that are well marketed, I also teach my clients what they need to know to determine their own personal level of success. I cannot, however, guarantee that their concept, methodology, or what they choose to do or not to do for that matter, will make them successful. Your success will be directly determined by the decisions you make and the actions you take.
Service FactoidOnline customer service should mimic off-line: service with a smile; suggestive sell; menu in plain sight; the customer is always right; quality, service, cleanliness; brand awareness/corporate identity; unique selling point; customer appreciation. You need to partner with a company that understands translating these nuances to the online world. |
Myth #1: It’s Easy, Just Do it Yourself!
Yes, putting up a Web site is easy - all you need is some HTML software and a phone line and you can have a “Web Site”. But, do you have a truly effective Web Presence? Putting up a Web site to handle e-Commerce transactions is pretty easy, too (once you learn how to upload and sample files and graphics for the Web). But add words like profitable, effective, scaleable, and successful, and it gets a lot harder - F.A.S.T.!
“A Web site is like an iceberg,” says Delta Air Lines CIO Charles Feld, a longtime IT executive with stints at Frito-Lay and Burlington Northern. “What you see looks small and simple, but below it you have ….”. Ah-ha! That statement is clearly part of the misconception involved in easy, do-it-yourself solutions.
Solutions that do not take into consideration the necessary structurally sound code that must be in place to ensure your site is cross-platform regardless of who shows up. They never mention either that the code their applications create, as well as the structure of your site, do not take into consideration your Search Engine listings.
How will your customers “show up” if they do not know you exist because they can’t find you in the first place?
Myth #2: It’s cheap!
Having a Web site is can be less expensive when compared to having a physical location and all that will entail. But that is where the similarity ends. (The Big Guys spend on average of $750,000 to get their online sites running.) “It’s not like what IBM says in their e-business ad campaign: Just extend what you already have,” says Roy Satterthwaite, a research director at Gartner Group.
Have you visited any of the sites that IBM uses in their marketing campaign to make everyone think that they have the low-cost easy solution? Very disappointing. If you house your site on a free server, you will get poor performance and reliability without the necessary marketing tools. If you have the local part-time “Web designer” create a cheap site, without the necessary criteria in place for search engines, navigation, customer service and confidence - you will look cheap because that is exactly what you paid for.
Many companies do not realize that the bar has been raised significantly in the last several years. Once online, you too will gain a discriminating eye and be able to quickly distinguish those sites that are committed to utilizing the technology for the success of their business - because they have invested accordingly! Many seasoned Netizens will NOT do business when arriving at a site that is clearly home brewed. Immediately these questions arise:
- Is this a real business? <clicking sound as they leave your site…>
- Hmmmmm…doesn’t look like they have invested much, they could disappear overnight! <clicking sound as they leave your site…>
- Yuck! If this is any indication of the quality of their product (or service). <clicking sound as they leave your site…>
- I can’t find my way around here and where’s the information I want? <clicking sound as they leave your site…>
- Darned site crashed my browser - won’t go back there again! <clicking sound as they reopen their browser and go looking for your competitors…>
- The graphics are so poor I can’t tell what the product is. <clicking sound as they leave your site…>
- The basics of how to contact them aren’t even here - where are they? Looks like a fly-by-night. <clicking sound as they leave your site…>
- No return policies, guarantees, service guidelines? <clicking sound as they leave your site…>
The days of the Web leveling the playing field for small guys is unfortunately over. Yes, several years ago the average guy/gal could put up a simple Web site and get attention/sales/leads. Not anymore. Web site costs are expected to double moving forward. Why? More is and will be involved and required to have a successful Web site. Here are the latest figures on what is predicted for Web development costs to ensure any level of success:
Average Spending by companies with less than 10 employees:
Low: $35,000 High: $150,000
Spending required to get on the map in 2005:
Low: $300,000 High: $1,000,000
If you want to run with the big dogs:
Low: $1,000,000 High: $5,000,000
To brand and stand out from the rest:
Low: $5,000,000 High: $20,000,000+
Yikes! These figures were gathered by GartnerGroup and Jupiter Communications, two of the leaders in technology statistical data. These figures do not even represent the off-line marketing of dot coms on TV (average currently being spent here per dot com - $75,000,000 per quarter).
No, you need not fret about having to spend these amounts to be effective.
However, to ride the wave, if you are serious about your success, you cannot go to the other extreme and be a nickel and dimer either and expect results.
The Web is now the playground of serious business folk and rabid entrepreneurs. Business skills, ongoing investments in your Web presence and the ability to embrace and learn, and implement that which you need to know to be successful will separate the winners from the wannabes.
Having a presence on the Web, when 1,000,000 pages are being added daily, means you need to separate yourself from the noise to be heard. You need to become a sponge and soak up all the information you need to use this medium to your full advantage. Without a certain level of commitment and investment in your site, including learning and doing what is necessary to your success, will mean that you will have nothing more than some files on a hard drive connected to the Internet - nothing more.
The good old days are officially over. But to those who “get it”, who work at it, who continue to do what it takes - let the good times roll!
The Web is about perception and marketing. If your site does not immediately instill credibility, professionalism and confidence, your “cheap” Web site just cost you customers. Loose enough customers or opportunities and “cheap” quickly becomes very expensive!
Amazon.com FlashbackAmazon.com, the paragon of e-Commerce success, lost nearly $25 million on $153.7 million in revenue in the 3/2000, and marketing costs were a big reason. Amazon’s marketing expenses grew from $11 million in the first quarter to $26.5 million in the second quarter to $37.5 million in the third - more than it spent on technology. The annual cost of a major licensing deal on a high-traffic portal runs well into eight figures, and Amazon has several such deals. Amazon’s third-quarter infrastructure costs included more than $550,000 to lease a book warehouse in the United Kingdom and the expense of expanding its main warehouse in Seattle, which now costs more than $450,000 a year. Is Amazon gaining new customers from its marketing investments? Absolutely. Its revenue for the first nine months of 1998 was $357.1 million, up 337% from the year-ago period, and the company’s stock price is up about 1,000% since its initial offering in May 1997. But the company is losing money–lots of it–proving the point that the Web isn’t cheap. (Now, look where they are today!) |
That’s not to imply you need to spend even close to that much - but again be careful to not go to the other extreme either. You need the expertise of a professional if you are in fact serious about your venture. Don’t assume that because technology still offers a magnitude of opportunity, and that the few Netizens who will trip on your low quality site are an indication that cutting corners is O.K. All you need is to have one competitor who “gets it” and quickly your site will not be visited or quickly left once verification that the “other guy” appears more credible than you. This is where that BACK button on your site visitor’s browser comes in handy!
Myth #3: Everyone is doing it!
If you live in a technology hub such as Silicon Valley you can find plenty of evidence to support this myth. And just about every company has a Web site. Once you get out of the technologically advanced areas you will realize very quickly that not everyone is doing it - or unfortunately, not doing it right. Brochureware isn’t e-Commerce; it is a great starting point that allows you to test the future direction of your site and give you the opportunity to learn and get comfortable with the technology.
However, to remain effective and gain success with the Web, one must be committed for the long haul to evolving and changing as the technology grows. If your personality is not conducive to change, if you are uncomfortable with intangibles or taking even the smallest risk - then the Web will be more torture that excitement. As the saying goes - “The only thing consistent about the Internet is change….”.
Big Company FactoidWith a few notable exceptions, such as General Electric, Boeing, and the Big Three U.S. auto makers, most old-line manufacturers took their time to move into e-Commerce. “In some companies, you almost need the retirement of an entire generation of purchasing and sales staff members before it will happen,” says Sam Kinney, co-founder and executive VP of FreeMarkets Online Inc., “This is not an overnight thing. There are some massive penetration barriers that will not fall for decades.” |
So, rest assured you need not jump on the bandwagon unless you are prepared to do so wisely, with diligence and precision. Create a budget for your starter brochureware site and then grow into e-Commerce or database functionality as the need and demand becomes apparent. Don’t assume because your friends who threw together their own site and rave about the money rolling in are telling you the truth. What else would they say?
Myth #4: Get Rich Quick!
Despite the online sales success of a handful of poster children, for every Dell Computer and Yahoo! (who still is struggling BTW) there are dozens of companies that do not have online success stories. Their lack of success can be effected by many variables - too many to list here. You need to know your market, have a plan, research your competitors, target a niche! Slapping up a crappy home-made Web site will not generate an income that will allow you to quit your day job or make your business profitable.
Even sites that are visually appealing, and correctly structured will not produce if the product is not one people want at the price they are willing to pay or if the site owners do not use the technology to their full advantage. And, add to that if you do have the right product, at the right price - what if you aren’t getting found? Search Engines, without a doubt, require an ongoing proactive approach to maintain your listings. And they now cost $$! Without these efforts, you will get lost or dropped altogether.
Why many people assume that the Web is a ticket to riches really is baffling. It is important to realize that your Web site will need to be taken as seriously as if you were opening up a physical location, nothing less. Yes, there are companies that are very profitable and those that have the potential for riches; but they are few and far between because most people do not want to make the necessary investments monetarily and in time management, learn the necessary skills, pay the fees to ensure a quality presence is developed and maintained - for the long term.
And. . . let’s not forget about business-to-business online, which is projected to leave business-to-consumer online sales in the dust and soar into the trillions of dollars. (Yes, that is a “T” for trillions!) This projection reflects the fact that business-to-business commerce in the off-line world is larger than sales to consumers. What this reflects is what I tell clients all the time - you don’t have to be retail to be on the Web!
e-Commerce Factoid“e-Commerce is like the market in China for U.S. companies,” says US Web’s Laube. “Most probably aren’t making a profit there yet, but they’re in China because of huge market potential. The returns will be a few years in coming. You have to have deep pockets and be willing to stay with it.” |
Myth #5: Level Playing Field!
In other words implying that startups can instantly compete on the same footing as long-established companies. Hogwash! Size does matter when it comes to the business expertise, planning, marketing efforts - and that is precisely what counts online. Then throw in a dash of automated database and customer service functionality and splash of trust and consumer confidence and you have the recipe for success! All of which requires commitment in terms of financial and time resources.
The Web is not a “Build It and They Will Come” environment without the serious efforts explained within this site. Small companies, with the appropriate efforts (and Technology Partners) can do very well.
The Truth Hurts Factoid“The most successful business person is the one who holds on to the old just as long as it is good and grabs the new just as soon as it is better!” |
At this point as a small business you may be wondering why you should get involved at all; even if you stand a chance! And if you were here in The IStudio®, I would look you in the eyes and tell you “Of course, you do!”. Don’t let my myths and reality check scare you - get excited because you now know what is involved and knowledge is power! The key to small business success is partnering with those that know how to give the same perceptions that the big guys do when it comes to trust and consumer or business confidence.
The Internet has changed many things, one important point however, goes untouched. The Internet has not changed the way you earn credibility, not one iota. You will build your customer base or attract new customers by actual performance, by reflecting that you understand the technology in which you are participating and that you are using it to its full potential.
That is not so tough to accomplish if you are willing to make the right decisions!
- Doo-Doo.com
- Success by Osmosis?
- Company-Customer Pact
- What Should a Web Site Cost?
- Are You a Netrepreneur?
Tags: building a successful Web site, having an online business, online business success, truth about having online business







